Integrated engineering solutions provider today reported a robust financial performance in the second quarter (2Q2022) and six months ended 30 June 2022 (1H2022).
Kelington registered a record high quarterly revenue of RM312.4 million in 2Q2022, an increase of RM186.0 million or 147% year-on-year (YoY) from RM126.4 million in the preceding year’s corresponding quarter (“2Q2021”).
The Group’s profit attributable to shareholders of the company (net profit) climbed 84.0% YoY to RM13.6 million in the quarter under review as compared to RM7.4 million in 2Q2021.
The strong growth in financial performance was attributed to higher project completion in Malaysia and Singapore.
Revenue and net profit in 1H2022 hit a new record high of RM485.7 million, a jump of 110.0%, and RM21.9 million, up 70.0% respectively.
Meanwhile, the Malaysia operations recorded the biggest increase on revenue, and rose 177.0% to RM225.9 million, on the back of higher contribution across all business segments.
In terms of business segment, the Ultra High Purity (UHP) division remained the primary revenue contributor at 63.0% of the Group’s total revenue in 1H2022. As compared to the previous year’s corresponding period (1H2021), revenue from UHP division climbed 89.0% to RM304.4 million spurred by rising contribution from projects in Singapore and Malaysia. General Contracting division contributed revenue of RM135.5 million, which represents a 374% YoY increase underpinned by a major general contracting job in Malaysia.
The Industrial Gases division continued its upward performance in 1H2022 as revenue increased 31.0% to RM21.5 million, driven by higher production output.
“We are delighted to conclude the first half of the year with impressive top and bottom-line performance. Moving forward, we remain confident of achieving a commendable financial performance in the current financial year as we have our hands full carrying out a substantial outstanding orderbook,” Ir. Raymond Gan, Chief Executive Officer of Kelington Group Berhad said.
“As at 30 June 2022, we have secured new contracts amounting to RM798.0 million. Including the projects carried forward from the previous year, our total orderbook stands at RM1.9 billion, of which RM1.4 billion remains outstanding. In addition to that, we recently clinched a UHP contract worth approximately RM117.0 million from a customer in Singapore to undertake bulk and specialty gas system distribution works. Prospects of the Industrial Gases division remain positive as demand for liquid carbon dioxide (LCO2) increase with the recovery in economic activities,” he added.
“We will continue our active participation in project tenders across our Ultra High Purity, Project Engineering and General Contracting Segments in the geographical markets we operate in,” he concluded.
